A floor rate is the minimum credited interest a policy or annuity guarantees during a crediting period. In fixed indexed annuities, a 0% floor means negative index performance will not reduce the account via negative credits. Floors provide downside protection and are key to risk-managed accumulation strategies, although other charges or withdrawals can still reduce values.

Producers emphasize that floors protect principal from negative credits. Reviews explain how floors,caps, and participation work together and set realistic expectations for long-term returns in indexed designs.